China has officially halted the proposed acquisition of artificial intelligence startup Manus by Meta, marking a significant intervention in a high-profile cross-border tech deal. The decision was announced by the country’s top economic planning agency, the National Development and Reform Commission, which ordered all parties involved to terminate the transaction.
According to the commission, foreign investment in the acquisition of the Manus project is prohibited, effectively shutting down the deal that had been agreed upon late last year. The move highlights Beijing’s increasing scrutiny of foreign involvement in sensitive technology sectors, particularly artificial intelligence.
Manus, an AI agent developed by a company originally founded in China but now headquartered in Singapore, had attracted attention for its advanced capabilities. The acquisition by Meta—parent company of Facebook—was seen as part of the tech giant’s broader push to strengthen its position in the global AI race.
However, the deal quickly became entangled in regulatory concerns. Reports indicate that Manus co-founder and CEO Xiao Hong and chief scientist Ji Yichao were summoned to Beijing earlier this year as part of a review process. During the meeting, they were reportedly informed that they could not leave China while authorities assessed the implications of the acquisition.
The development underscores China’s tightening control over strategic technologies and its cautious approach to foreign ownership in critical innovation sectors. It also reflects broader geopolitical tensions shaping global tech investments, where governments are increasingly prioritizing national security and data sovereignty.
For Meta, the blocked acquisition represents a setback in its efforts to expand its AI portfolio. For China, it reinforces a clear message: key technological assets, especially in emerging fields like artificial intelligence, will remain under close regulatory oversight.
As global competition in AI intensifies, decisions like this are likely to influence how international tech deals are structured—and whether they move forward at all.
